Posts Tagged ‘Fed funds’

Fed frozen in time

Wednesday, August 10th, 2011

The Federal Reserve’s Federal Open Markets Committee (FOMC) shook up the markets with its statement on Tuesday that it would likely keep rates exceptionally low through mid-2013. This prompted three dissenting votes, which may have had more to do with the volatile reaction than the actual announcement. However, the announcement is pretty remarkable.

The Fed is telling us that it will maintain a zero interest rate policy—the same emergency policy that has been with us since December 2008 — for nearly two more years.  (more…)

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Posted in Credit crisis, Federal Reserve, economy | 1 Comment »

More Fed doubletalk

Wednesday, October 14th, 2009

Speaking late last week in Washington Federal Reserve Board Chairman Ben Bernanke hinted that rate hikes may be on the way. Bernanke said, “When the economic outlook has improved sufficiently, we will be prepared to tighten the stance of monetary policy and eventually return our balance sheet to a more normal configuration.”

Not exactly a bold statement but a necessary one as it became imperative to say something supportive of the dollar after last week’s weakness. It has not lasted as the dollar made a new low for the move today.

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Posted in economy | No Comments »

Ben, put your rep where your mouth is

Wednesday, September 23rd, 2009

By now you have all heard that Federal Reserve Board Chairman Ben Bernanke said that the recession is probably over following a speech last week.

Those words probably don’t mean a lot to those who have lost their jobs or those who will soon lose their jobs as the economy continues to shed jobs, albeit at a slower pace than in the heart of this recession.

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Posted in Regulatory/actions, Uncategorized, economy | 1 Comment »

Duh!

Monday, December 1st, 2008

The National Bureau of Economic Research (NBER) revealed the worst kept secret in the world on Monday when its Business Cycle Dating Committee report “determined that a peak in economic activity occurred in the U.S. economy in December 2007.”

The peak marks the end of expansion and the beginning of a recession. The NBER does not accept the common definition of recession: two consecutive quarters of negative GDP growth.
NBER defines a recession as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators.”

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Posted in economy | No Comments »

Bad data

Wednesday, April 30th, 2008

With the Stock market recovering anywhere from 50% to 75% of its 2008 losses, depending on what index you are looking at, and analysts declaring a bottom is in for equities and the worst of the subprime fallout has hit, one may expect some number to back those statements up.

Unfortunately none were forthcoming on the eve of the Fed’s announcement on interest rates. Tuesday the S&P Case-Shiller Home Price Index for February showed continued weakness in the housing sector.

“There is no sign of a bottom in the numbers,” said David M. Blitzer, Chairman of the Index Committee in a release. “Prices of single family homes continue to drop across the nation,” Blitzer added.

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Posted in Uncategorized | No Comments »

Will Fed run out of ammo?

Tuesday, March 18th, 2008

Everyone is expecting the Federal Open Markets Committee (FOMC) to come in later today with a significant cut in the Fed Funds rate following its March meeting. Estimates in the general business media range from 50 basis points to 100 basis points, a full 1% pushing the rate from 3% to 2%. That would leave the Fed with very few bullets and continue to ignore disturbing inflation data.

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Posted in Markets | No Comments »

UBS changes outlook – U.S. recession likely

Tuesday, January 22nd, 2008

That the Federal Reserve Bank lowered the Fed funds and discount window rates this morning is old news; but now UBS has officially changed its outlook today and is predicting a U.S. recession.

“The ball started rolling with the recession-like rise in unemployment in December,” says Jim O’Sullivan, UBS chief U.S. economist, adding that last month’s decline in the CEO confidence index, combined with a slipping stock market and weak jobs report have tipped the balance. “It’s just the sense that businesses and consumers are getting more cautious. And the down turn in housing is starting to feed on itself,” he says, adding that he anticipates recovery in the second half of 2008.

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Posted in Markets | No Comments »